the level of expertise needed to execute the operation, recent similar iranian attacks on shipping and the fact that no proxy group operating in the area has the resources and proficiency to act with such a high degree of sophistication. dagen: iran denying involvement, saying this morning it is responsible for the security in the strait of hormuz and calling the united states' move to blame iran alarming. joining me now, global economics editor for the wall street journal, john hilsenrath. this is an economic story for the united states and for the globe. we saw a big move-up in oil prices yesterday. how do you assess it? what are people telling you? >> well, you know, what i find remarkable about this event is what didn't happen. it's true that oil prices moved up but they really didn't move up very much. if you think what would have happened 10 years ago if we had tankers being shelled like this in the strait of hormuz, you would be looking at major increases in oil prices and i think the reason that's not happening right now is because the united states has a shale boom going on. if you actually look at domestic shale producer stocks yesterday, they all went up. the u.s. shale boom is insulating the u.s. economy and financial markets from events like this, which is really good news for the u.s. economy, for the global economy. one of those tankers was a japanese tanker. this could be problems for other countries that depend on gulf oil. dagen: i've been saying this for years and years and years, as long as i've been certainly on television, about the importance of our energy security. energy security is national security. and to basically the more oil we can produce, we don't have to worry about a supply disruption, number one and we also have greater control and power over these nations, these oil producing nations that hate us, like iran. >> right. if iran did this, and that's what secretary pompeo said, i don't think all the evidence is in, but if iran did this, all they're really doing is hurting themselves and hurting other oil producers in the gulf nations. because anyone looking for a stable source of oil supply in the world right now has to be looking at the united states. and when you look at what's going on in venezuela, the potential for transportation disruptions in the middle east, the u.s. is a stable distributor. and i think we're also -- the united states is still building out its infrastructure. we've got pipeline infrastructure going up. this going to make it even easier to ship from the permian basin in the months and years ahead. so again, it's really remarkable to me. i think 10 or 20 years ago i would be sitting here today saying this could be the kind of thing that could cause a recession. and today i'm saying if you look at what happened at 10 year treasury yield, stock prices, oil prices, it doesn't register on a one month or three month basis, if you look at charts over one or three months. you don't even see this event yesterday. dagen: we are the world's number one oil producer. we produce more oil than even saudi arabia and russia, i think based on the most recent information, and oil is still -- even through yesterday's close, it's still down in a bear market, it's down more than 21% from the recent high hit in april of this year. i want to move on to tariffs, hundreds of american companies including walmart, costco, target, sending a letter to president trump, writing against tariffs. the white house economic advisor larry kudlow speaking yesterday about the upcoming g-20 summit and potential meeting between president trump and chinese president xi-jinping. listen to this. >> president trump has indicated his strong desire for a meeting. but the meeting is not yet arranged formally. he's also indicated that if the meeting doesn't come to pass, there may be consequences. but he would prefer the meeting. dagen: one of the world's largest chip makers, broadcom, cutting its revenue forecast, amounting to $2 billion in lost sales as a result of banning chinese telecom giant, huawei. these are the two fronts. again, the tariff fight and then cracking down on the espionage and theft by the likes of huawei. your reaction to both of those stories? does it do -- does this do anything? a warning from a major chip maker and then also pushback from these u.s. corporations. >> well, you know, i think the president is comfortable with where he stands on tariffs with the chinese. he tried to use tariffs with mexico as a lever in the immigration debate and he kind of got a lot of blowback on that. when it comes to china, the president's view is it's raising a bunch of revenues. there's debate going on about whether that's a tax on u.s. consumers or a tax on chinese companies. but i think he's comfortable with what's happening. the fact of the matter is, we're not seeing tariffs on china show up in consumer prices at this point. all the inflation data are below the fed's 2% target. i think the president feels like he still has leverage in this debate with the chinese and he's going to take his time and let this thing play out. dagen: moving on to this, you big nerd. i say that as your friend. this is incredible, in the wall street journal today it's an article that you co-wrote with kate davidson. and the headline reads how washington learned to love debt and deficits. here's part of what you wrote. moody's projects within a decade interest payments will consume more than 20% of federal revenue. well above most other developed nations. and exceeding u.s. levels in the 1980s and 1990s when debt worries consumed wall street and washington. alan simpson, retired in wyoming anticipates a reckoning. if you spend more than you earn, you lose your butt. again, this is also -- you write about this. you call it a mini revolution in academia where leading scholars are debating whether we can run these high debt levels and high deficits. >> we talked about this a lot on maria's show. the key factor here is what's going on with u.s. borrowing costs. 10 year treasury yields are now near 2%. this defies every prediction that every economic model has. when borrowing -- when government debt soars like this, the models say that interest costs should increase and that corporate borrowing should be crowded out by government borrowing. and it hasn't happened. right now, the governments' interest payments are being held down by very low interest rates and corporate borrowing is booming, even as government borrowing is booming. and so there's a real sense of choose your term. you could say complacency in washington or you could say comfort that the high debt levels aren't a problem for the united states government. when i talk to people like alan simpson, very colorful guy you saw from that quote, what they worry about is that this comfort level is going to go away some day. interest rates, they're 2% today. they could be going higher in the future. and then we're talking about a real problem. dagen: in all your reporting, and you go into detail and i encourage everyone to read the story in terms of just our interest costs, the interest on our debt, the amount of money we spend, it's going to swamp medicaid this year and in five years it's going to top what we spend on national defense. do people think that this could basically -- that longer term interest rates, all of a sudden could snap back where the government and all those in charge of this federal borrowing are shocked and there is a global economic shock, if you will? >> this is where the debate is going on in academia. what the economists have wokeen up to is the fact that interest rates have tended to be lower than the economy's growth rate for most of the post world war ii period interest rates have consistently defied expectations for that snapback that you talk about. and so the idea in academia is maybe all this debt isn't a problem because the economy keeps growing faster than the interest cost is costing us to manage the rising debt. well, the worry is that once you recognize some pattern, like interest rates tend to be low, they defy that expectation and smack you in the face. the worry is that interest rates are going to snac snap back andp us in the face. people have been predicting that for years but it hasn't happened. dagen: i said nerd but you know what i think of you, and you are, you're one of the best there is in terms of economics and journalism. thanks a lot. smart'pet smart's online busines adding energy to the market. cheryl: chewy.com, pricing its initial public offering at $22 per share, higher than expected for the range. chewy has yet to make a profit but they sold more stock than they planned and the company is valued at $8 billion. starts trading today on the new york stock exchange under the ticker chwy. hot ipo market helping pet smart and another retailer, niemann marcus, resolve disputes with creditors. wall street journal is reporting both companies promised lenders to use money from their ipos to pay off debt. niemann marcus agreeing to give creditors the first $450 million from the sale or ipo of its online business. pet smart is using more than half the proceeds from chewy's ipo to reduce the debt load. trump administration going to allow employees to use special pretax health arrangements to buy insurance that includes policies that don't comply with obamacare protection. the administration says the rule is expected to expand coverage by 2029 to an estimated 800,000 people that were previously uninsured. for more on this, labor secretary will join "mornings with maria" at 7:00 a.m. even time. kpmg preparing to pay as much as $50 million to end an sec investigation. the wall street journal is reporting the fine would be the highest ever imposed on an auditor in an s.e.c. action. they are facing criminal charges after four partners were found sharing confidential information about which of the firm's audits would be examined by regulators. those are your headlines. dagen, back to you. dagen: thank you so much. coming up, facebook getting into crypto, big names reportedly backing the plan for a digital currency. plus an historic win for toronto, the raptors winning their first nba title, all the highlights in sports. plus, how rapper drake celebrated, coming up. ♪ dagen: a big show coming up this morning. u.s. labor secretarial ex an see administration is doing on healthcare costs. house financial services committee member french hill, former pennsylvania governor, ed rendell and former commanding officer of the u.s.s. cole, commander kurt liphold, you don't want to miss any of these gentlemen. talking to the producer, we were saying there's so much to cover. where are we going to put it all? we're getting to this top story, facebook's new cryptocurrency, the social media giant reportedly getting big backers for the virtual money venture, set to be unveiled next week and launched next year. this is according to the wall street journal. the journal reporting that more than one dozen companies including visa, mastercard, pay pal and uber, all signing up. each investing around $10 million. joining the conversation all morning long, cfra investment strategist, lindsey bell, benchmark managing partner kevin kelly along with former nfl star, jack brewer. welcome one and all. what do you make of this? >> this is a big move for facebook, getting all these names signed on is important. >> yes, it's a big deal. there's a couple things happening here. first and foremost, visa, mastercard, pay pal, all these companies do not want to be on the outside looking in, so makes sense for them to come in and do a deal because it's sort of a free bet. you have a lot of these payment processing companies worried about big tech coming in on their turf. everyone's worried about amazon getting into financial services. this is a defensive play to make sure they're part of the conversation and for facebook it makes sense because they can reduce slippage and fraud through having a cryptocurrency r with yocrypto currencywhere i. it makes sense for both sides. dagen: it's a pushback on bitcoin as well. >> you've seen bitcoin and other cryptocurrencies be extremely volatile. the positive about this new cryptocurrency is that it's going to be backed by a basket of government securities. it will help keep the volatility in the new currency down i think. but the question for me really is, when you thinke thinker abot facebook who is -- think about facebook who is having privacy concerns, they'll be verifying and recording transactions. are they going to be able to keep them private and not let the transactions be released to the public. >> the security concerns for me have elevated. i recently got hacked and i tell you, it's very, very bad experience. i mean, what they're doing now, they're going in and actually forcing you to pay for your own website. they stole my social media and everything. they're using bitcoin and no one can trace it. for me, it's about the security concerns. dagen: they tried to extort you? >> they did extort me. dagen: did you call the federal authorities? >> i called everyone. you can do almost nothing. i tried with instagram. couldn't get my instagram account back. they literally took -- this is my nonprofit. they took my nonprofit and put up just horrible explicit words on the screen. i mean, it's just a bad, bad, bad situation. so my hope is that hopefully facebook or some of these bigger organizations can come in and add some more security to these crypto -- dagen: we can get in here. what you're saying is there is no governance and protection for the people using the platforms now and when you are hacked, they don't do anything or they do paltry little. if your identity is stolen, something to that effect, law enforcement needs to be brought into the picture. your question is, why would anybody trust these platforms basically with a new currency, if you will, if they can't even manage the businesses they have now and protect users on the platforms. >> i want to bring up a point earlier. we were talking about bitcoin. bitcoin is seen as value with networks put around it like the lightning network to do payment processing systems. this is completely separate from this. this is a closed architecture financial services system between all these vendors that are within it. so i thin i think there's goinge accountability across the board. facebook is going to exert control. dagen: they won't control it directly. >> they can't control it, right. dagen: that's in an effort -- they made that decision in an effort to basically stem the concerns about them -- the privacy. >> as the developer, they can decide who comes in and who comes out of the consortium, of who can use it, what platforms can use it. they can't control the actual currency and the value but they can control certain aspects. >> that's good. we need that. because -- dagen: i'm sorry about that. >> it's been terrible. dagen: you don't know who to call. >> law enforcement can do nothing because it's over their head and they don't understand it. dagen: kim kardashian back at the white house discussing criminal justice reform and new initiative with lyft. jessica biel facing critics over what appears to be an anti-vaccination stance. the actor says that's not the case. we explain, ahead. ♪ you know exactly how i feel. ♪ i have my doubts. ♪ i'm in love with something real. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis. taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. i have it within me to lower my a1c. ask your doctor about trulicity. ♪ mmm, exactly!ug liberty mutual customizes your car insurance, so you only pay for what you need. nice! but uh, what's up with your partner? 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semitrucks without drivers coming to florida highways as early as next year and with no real warning. the you autonomous driving systems apparently don't need to be tested, inspected or certified under a new state law, taking effect july the first. this goes to the issue of how quickly we're going to see autonomous vehicles nationwide. i think that's what people are trying to figure out, how soon that will happen. >> it's funny, usps is testing this in routes in texas for delivering the mail. so this is actually coming sooner than we think but we actually still need to build out our systems and infrastructures from the cell phone towers to process the information for autonomous driving vehicles. it's going hand in hand. it's pretty interesting. >> isn't it scary that semis sel come out before regular cars. >> >> there's a lack of drivers. we're talking about these tariffs hitting retailers, if they could reduce the cost of trucking and labor, that could help them. >> if they start hiring guys with criminal backgrounds for nonviolent crimes, you have plenty of guys to drive the trucks. dagen: amen. look out for the teamsters union pushing back on this a little bit. coming up, sarah huckabee sanders leaving her post as press secretary and a watchdog group is pushing for president trump to fire advisor kellyanneway, we have details. this construction worker dad became an instagram influencer to prove how easy it is, but there is a huge catch. ♪ running on empty. ♪ running on. ♪ .. dagen: it is friday, june 14th, top stories at 6:30 eastern, futures point to a lower open, 78 point loss on the dow futures commission make is under pressure after broad, warned of lower sales do to the huawei been. what is the sacrifice for companies and individuals as we take on china? chinese industrial production numbers hitting the market after markets finished up slightly but session highs yesterday. the major averages going into friday up across the board with dell transports being the biggest gainer, 2% gain usually seen as a good sign for the market. let's check global market action in europe. loss of across-the-board in england, france and germany but the losses less then one person. in asia the industrial production number, not only the week dated, retail sales rising 7.2%, the slowest pace since 2003. we are looking at the asian markets down across-the-board, retail sales in the united states out two hours from now, we have fool analysis on the direction of the market and the federal reserve. kim kardashian back at the white house, details on the new program aimed to help prisoners with lift. construction worker turned instagram influencer but his story might not be what you think. oh canada, toronto raptors winning the first nba championship and drake celebrating with music. white house staffing shakeup, sarah huckabee sanders leaving their post, the president making the announcement yesterday after 31/2 years, our wonderful to huckabee sanders will be leaving at the end of the month, going home to the great state of arkansas. she the special person with extraordinary talent who has done an incredible job. i hope she decides to run for governor of arkansas. thank you for a job well done. joining the washington times opinion editor and fellow virginians charlie hurt. this is important because the president does need a tough and unwavering spokesperson going into the election year. who is on deck to take sarah's place? >> i don't know. those are tough shoes to fill. sarah has done a terrific job, working for a very difficult unusual boss, a guy who is his own press secretary. a guy who has very specific opinions about how he wants the job done and she has done it against a hostile press the likes of which i don't feel we have ever seen before in modern times. it is incredible the hostility she faces and she does it with grace, i think she has done it with as much candor as you can expect from a press secretary of any president but they are tough shoes to fill. dagen: above venom directed at her when she was in the job and after she left yesterday, venom especially from women, we shouldn't be surprised. women on the left and the harassment of her and her family, whether it was the restaurant in lexington, kentucky, some celebrity at disney world was taking selfys with her and family and kids in the background. what is wrong with these people? doesn't discourage anybody from taking this job? >> that position has always been a tough position and there is always a lot of questions directed at the principle, in this case the president but what is so different about this is how much of that venom has been directed at her personally and it is unprecedented and it is a real stain on the news profession as well as indicator of modern times where everybody has access to media and little things ricochet around the internet but it is really disgusting. dagen: i call it asymmetric outrage, john stuart's outrage for 9/11 first responders, that is justified. that is where you should direct that anger but this is just mind-boggling. >> what amazes me is i don't know how they keep it up. how do you manufacture this amount of rage over stupid things and the net result, you can say what you want about this president but the net result is this president has overseen a remarkably transparent administration. a perfect example is the controversy yesterday about whether or not donald trump would go running to the fbi if a foreign adversary brought dirt on a political opponent, he openly disagreed with his fbi director. how is that anything but transparent? as a guy who grew up and worked for newspapers i love that transparent disagreement but not this press. dagen: they said blue about hillary clinton paying off a foreign intelligence agency to go to russia and dig up dirt on her political opponent and put that in the hands of the fbi and turn around and use it to spy on her opponent. turning to kellyanne conway this is pretty serious, the us office of special counsel taking game at the white house advisor saying she should be removed from working in the federal government accused of violating the hatch act which aims to stop people working in federal government from affecting elections after she made heated remarks during recent television news interviews. speaking to neil cavuto, valerie jarrett weighs in on how she thinks president obama would have handled a similar situation. >> you would make a comment on people. >> not a political one at all, not when you are in the white house, in the briefing room, the north lawn. >> he recommend she take a hike, you agree with that. >> that is a boss. all i can tell you is what the obama white house would have done, president obama would have had 0 tolerance for that. if i had violated the hatch act he would have fired me. >> i'm all in favor of enforcing the hatch act but has never been enforced and this is another example of this double standard and not only a double standard but a double standard against an administration that has withstood unprecedented venom and vitriol from the press and the outside so the idea you have kellyanne conway defending her boss, defending the administration and that turns into a violation of the hatch act which nobody enforces anyway is absolutely ridiculous. dagen: i see a lot of misdirected anger. if they don't like the president, and they don't like the way he speaks, a lot of that. but if your anger, rage and attention and energy on this focused, what happens? you run somebody like hillary clinton who loses. >> that is the problem democrats face going into 2020. if the only thing they have the candidate they pick is the candidate who is best at attacking donald trump they are not going to win anything. they have to present an actual vision that is positive, attractive to regular american voters and specifically the independents that donald trump stripped out of the democratic column. dagen: i will point this out, wage gains rising, the most and lower paying industries without a $15 minimum wage. they have to figure out a way to counter that. >> if you strip out their hatred of donald trump's style, 90% of americans would be satisfied with the job donald trump is doing but because of this you look at his poll numbers, they say his poll numbers are low, look at the unprecedented negative press coverage. whose poll numbers wouldn't be through the floor if they got this level of vitriolic press coverage. dagen: good to see you. have a fantastic weekend. kim kardashian returning to the white house doubling down on her push for criminal justice reform. cheryl casone he has more. cheryl: and initiative with lift to get former prisoners get job interviews, meeting with the president several times about criminal justice reform. she successfully lobbied donald trump to pardon alice reed johnson who is serving life sentence without parole for drug offenses. our very own maria bartiromo had a chance to sit down with real estate developer and billionaire larry silverstein who covered everything from lessons learned after 9/11 to the fate of the economy. >> is all this conversation happening now that a recession is on the horizon but for the inverted yield curve, the federal reserve recently said we stand ready to act to cut rates? do you see recession on the horizon? >> i don't. i had to look at things with rose covered glasses but i see much of america doing well. the economy is strong and doing well, look at the job market, there's nothing remarkable. maria: you can catch more tonight on maria bartiromo's wall street at 9:00 pm eastern time. a texas father and construction worker who became a popular instagram influencer kind of a stunned. twitter user barbara ellis, started instagram account. the account racked up hundreds of thousands of followers but the entire operation was a marketing project orchestrated by a local coffee company. i feel very wrong and very upset about this. dagen: i was looking at my instagram account to make sure it is not hacked. we will talk about this as the morning wears on but those photos were two posts. that is why i was like those images are too good. cheryl: i am naïve, i fell for it. dagen: every photo i take of myself i had 20 years which is not good. >> he is posting photos like this, you got to think. dagen: we should ban anybody referring to their profession as influencer. >> i will get in trouble if i say that. maria: worrying about new money, financial concerns stressing americans out the most. oh canada, toronto raptors, the first nba championship, rapper drake celebrated with new tunes. ♪ starting here, in procurement, helping us find the right suppliers. then here in logistic, to avoid disruptions! here in sales. even here! i'm talking about ai we can build to work... here, predicting trends. and here, wherever our data lives! and here, working with all our other ai! i think we're done here. expect more from ai. ibm watson. ♪ heannouncer: more details incoming involving volkswagen and the growing scandal. dissatisfied customers filing complaints against the german auto maker. ♪ because a vision softly creeping ♪ ♪ left its seeds while i was sleeping ♪ ♪ and the vision ♪ that was planted in my brain ♪ ♪ still remains ♪ within the sound of silence ♪ in restless dreams i walked alone ♪ ♪ narrow streets of cobblestone ♪ ♪ when my eyes were stabbed ♪ by the flash of a neon light ♪ ♪ that split the night ♪ and touched the sound of silence ♪ going back to the doctor just for a shot. with neulasta onpro... ...patients get their day back... ...to be with... ... family... ...or just to sleep in. strong chemo can put you at risk of serious infection. in a key study... ...neulasta reduced the risk of infection from 17%... ...to 1%... ...a 94% decrease. neulasta onpro is designed to deliver... ...neulasta the day after chemo... ...and is used by most patients today. neulasta is for certain cancer patients receiving strong chemotherapy. do not take neulasta if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems, allergic reactions, kidney injuries and capillary leak syndrome... ...have occurred. report abdominal or shoulder tip pain, trouble breathing... ... or allergic reactions to your doctor right away in patients with sickle cell disorders, serious, sometimes... ...fatal crises can occur. the most common side effect... is bone and muscle ache. ask your doctor... ...about neulasta onpro. pay no more than $5 per dose with copay card. your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. dagen: americans both optimistic and anxious about money. first on fox interview. a new merrill lynch survey showing 56% of americans admit they, quote, treat themselves when they meet a financial goal, including material purchases, buying clothes, taking a vacation, eating out at a nice restaurant and indulging in spa or beauty treatments. bank of america has consumer banking and investment. what jumped out in this survey? was it surprising? >> there is a combination of hopeful optimism for the future meaning down the road i'm going to be okay but right now the next 3 to 5 years people are in incredible stress and stressed about how they are going to manage competing priorities, how do i save for retirement, how do i save for a home, how do i handle paying for vacations, all those competing priorities creating a lot of stress. the good news is the solution side was over half the respondents said they are seeking advice digitally or with an advisor and two thirds said they are going to do that soon which is way above what i talked about a couple years ago. more and more people saying i am at a point where i truly need advice. cheryl: the adoption of digital and mobile device, the coming-of-age millennials, really worry about their financial situation and their future. is it because the younger people are moving towards mobile or do you see the older generation moving that way? >> everyone across the spectrum, certainly younger investors are the first and quickest. we are seeing more clients who have done it themselves saying we are the digital platform and i want to add an advisor and it is complicated and the planning side people are looking for advice on, not the investment side. and we couldn't go on digitally, are they in a chat room? how do they engage with their advisor? >> you can engage in a financial center and talk to someone in person and do a chat, video, phone. the key is clients need the advice. can we delivered in the way they are most comfortable? all of the above. no longer either/or. can i do it digitally and in person or on the phone and digitally? that is how it is working. >> are they stressed because of cost of living has gone up as well as cost of education? >> there is a series of stresses. student debt, you talk a lot about that. that's a high one. fears of where the economy is and the recessionary fears, their own personal debt, number one stress and on top of that is a feeling of is the economy going to stay strong? are they going to keep their job? >> money worries are taking a toll with 69% saying it is impacting their physical health. good to see you, please come back soon. a historic victory for toronto. the raptors getting their first nba championship. highlights in sports and how the wrapper celebrated next. thanksno problem.. -you're welcome. this is the durabed of the all new chevy silverado. it looks real sturdy. -the bed is huge. it has available led cargo area lighting. lights up the entire bed. it even offers a built in 120 volt outlet. wow. plug that in for me. whoa! -holy smokes! -oh wow! and the all new silverado has more trim levels than any other pickup. whoa! oh wow! -very cool. there's something for all of us. absolutely. it's time to upgrade. (laughter) dagen: exciting, historic night for raptors fans as the team clinches its first-ever nba championship. >> a new nba champion in toronto, canada. we the north are now we the champions. dagen: is that my brain? mike and i reached an agreement. >> definitely love them. dagen: tell me about the game. what jumped out at you? >> it was wild. going back and forth the warriors were the clear favorites to win the season and the raptors come in and beat them not once, not twice but three times on the warriors home-court. if you are a fan of partying go to toronto. first franchise title for them in the first sports championship for canada since 1993 when the canadians won. imagine the chaos and how much energy was going on. the game came down, i am kind of tired because it went down the last second back and forth. amazing time not only for sports, nba etc.. they were the clear underdog and one stop. >> in true canadian form an unconventional year, the best players starting to talk about it and unconventional methods. >> some people i like the raptors deserve to win but the warriors were banged into a. kevin durrant was hurt and last night on top of all that clay thompson, leading, and 2 minutes left. tore his acl, out 6 months to a year and best player on the court at the time. dagen: the new drake song, have you heard it? >> just what we need more of. more drake. is dropping two sans integration. they haven't come out yet but i'm sure they will be great. dagen: recorded last minute when he retires. clearly didn't jinx it, a busy first day at pebble beach, rory sabatini making an impressive hole in one. watch this. >> a moment ago at 12. rory sabatini, 202 yards away. you should celebrate. dagen: we all did that. >> day one, shout out to him, he finished one over but the big story, justin rhodes is your leader 6 under, tied the all-time record with tiger woods for single a shooting 65 on the day. tiger, barstool comes on and make sundays great again, you need tiger to make sundays great again. dagen: thank you so much, big heart for mike breen. he is in bed, still had parents, listen up, amazon accused of recording your children through alexa. the lawsuits next. incomparable design makes it beautiful. state-of-the-art technology makes it brilliant. the visionary lexus nx. lease the 2019 nx 300 for $359/month for 36 months. experience amazing at your lexus dealer. . . . truecar is great for finding new cars. you're smart, you already knew that. but it's also great for finding the perfect used car. you'll see what a fair price is and you can connect with a truecar certified dealer. now you're even smarter. this is truecar. dagen: good morning. i'm dagen mcdowell, in for maria bartiromo. it's friday, june 14th. your top stories at 7:00 a.m. eastern. futures are pointing to a lower open, through yesterday, markets up for the week, weighed down by technology stocks, chip makers, even apple under pressure after broadcom warned of lower sales due to the huawei ban, this after markets finished up slightly but off of session highs yesterday. yesterday's dow up more than 100 points, breaking a two-day losing streak. checking global market action in europe, we have losses across the board this morning. in asiaover night it was loss as well. weak industrial production and retail sales out of china weighing on investors, only gainer there the nikkei in japan, four-tenths of 1%. watching commodities. the u.s. blaming tehran for the fuel tanker attacks in the gulf of oman and releasing new video showing what it says is an iranian navy boat removing and unexploded mine from a tanker. even despite this disruption, oil down this morning, 20-cents a barrel. startling new developments in the dominican republic investigation. what authorities believe is the cause of the mysterious tourist deaths, tainted alcohol, tainted booze. and a warning for parents, a lawsuit claims that amazon's alexa, the devices are recording children without the consent of anybody. plus, turning the burger wars upside down, details on burger king's new menu item, that's straight ahead. all of that and so much more coming up this morning. investment strategist lindsey bell, kevin kelly and former nfl star jack brewer, great to spend the morning with you. what do you make of the warning from broadcom about the huawei ban, the reduced sales triggered and the overall market reaction? apple stock if you want to take a look at it, down 2% in premarket trading. >> semiconductors is a good barometer for economic activity. everybody was expecting a little bit of a snapback from the huawei ban but not to this degree that broadcom has guided. that really shocked the market because every analyst now is saying what did we miss that we didn't see this type of guidance going forward where it was going to be this bad. and so i think now everybody's starting to question themselves and you're starting to see knock-on effect. everyone has to redo their technology supply chain. now there's a huawei ban and they can't get core components, there's a knock-on effect. >> i think with the semiconductors, it's all about the second half of the year expectations, they were still very high despite what's going on with huawei and trade in general. i think numbers -- everyone knew numbers had to come down, inventories were being built up, this was a bigger surprise than expected. one thing to point out about apple it had been moving higher. the news about fox con being ready and willing to move production out of china, fox con is the largest private employer in china so that's going to be a huge blow to china if this continues and that also gives trump a little bit of more am he moammoin these trade negotiatio. dagen: companies are positive broadly with administration taking a tough stance on china, the forced surrender of technology and the theft of intellectual property which up until now companies were left to their own devices to try and fight this by china. they want to do business there but they were pushing back on the theft. now you have the support of the u.s. government. >> i would say not only companies but also countries. we saw a lot of significant companies and countries in europe talk about how they're co-a alessing around the u.s. on this, that there are forced technology transfers. dagen: and other countries in asia welcoming that business. coming up this morning, french hill, ed rendell and the former commander of the u.s.s. cole, kirk liphold on those attacks in the gulf of oman. plus, stuart varney, you don't want to miss any of those gentlemen. to our top story this hour, healthcare in america, the department of health and human services, labor and the treasury, joining forces for affordable healthcare coverage. the new initiative will expand the use of health reimbursement, letting employees use pretax health arrangements to buy insurance. the legislation estimated to benefit 800,000 employers, more than 11 million employees and family members including an estimated 800,000 americans previously uninsured. joining us now in a fox business exclusive, the secretary of labor, alex acosta. explain how this works and what void it fills. >> good morning, dagen. this is such an important option for millions of americans across the country. since obamacare we've seen fewer and fewer small businesses offering and healthcare and health insurance to employees. we've gone from about half of businesses with 25 or fewer employees to only about a third offering employees healthcare. and so with health reimbursement arrangements, what employers can do is simply put money in an account for their employees and then allow their employees, this is pretax dollars, allow their employees to take these funds and purchase insurance. it is more choice. the employees can choose whatever insurance they believe is appropriate and more portability. when an employ egos from one business to another, they can keep their insurance because they're paying for it themselves through employer money. dagen: what response, as you were putting this together, what response were you getting from small businesses and how many do you think will -- do you expect individuals will fine on and start using these accounts to buy health insurance? how many businesses will implement this? do you have an idea yet? >> we've got a very positive response. we're estimating almost 800,000 small businesses around the country will implement this. businesses want to support their employees. we have such a thriving economy that businesses understand that they need to offer their employees benefits. but it's gotten so complicated and so difficult to offer group health insurance, this allows those small businesses, those that have 10 employees, 15 employees, to tell their employees, look, we're going to put pretax dollars in an account meant for you. you control the dollars. you control the account. and you go out and buy the insurance that's right for you and for your family. dagen: this is the number one -- there was an nbc wall street journal poll a few weeks ago and the number one issue that americans want the government to work on is healthcare. and this goes to what you're doing and how are you going to message it. you really also have to get the word out there publicly. i know you're on fox business right now but get the word out publicly to people who might be eligible for these accounts. >> that's right. i think we need to understand that one size doesn't fit all, that the solution involves multiple initiatives. we're talking today about the health reimbursement arrangements. in a separate rule making, the department of labor, hhs and treasury issued something that allows association health plans, short-term limited duration plans. there's a number of options. they all have to come together and allow individuals across the nation, employees, americans, more choice, different plans benefit different people. dagen: i want to turn to jobs in america. former cke restaurant ceo andy pusder he was up for a job in the administration at one point, publishing an op ed, titled this faster growthiis paying off for low skilled workers. he says the most effective way to reduce income inequality is through policies that encourage job creating, wage increasing economic growth unlike government redistribution. it creates competition for employees that lift working class wages and that is what is going on today. the question for you, mr. secretary, is how do you keep it up? again, people in -- their wages are rising the most in lower paying industries, without a $15 mandated minimum wage. >> that's a absolutely right. one piece of information that we don't talk about a lot that i think is so important, if you look at the individuals in the lowest wage categories, we've seen wages go up 6.5%. so overall wages have gone up 3.4% but for the lowest wage category, 6.5%. and that's incredible. and so this is because of tax cuts and then deregulation came in and deregulation spurred the market and told businesses we're going to make it easier for you and something that i think is so important to keep this going is usmca. congress is going to be considering that trade agreement this summer and we need congress to pass that trade agreement between the united states and mexico so we can keep this economy thriving and humming and growing. because ultimately it's about jobs, more jobs and even more jobs. dagen: mr. secretary, good to see you. thank you so much for being here this morning, alex acosta, secretary of labor. we'll see you soon. >> take care. dagen: hong kong getting back to business today after days of massive protests. the world's most influential tech and business leaders gathering to talk about issues ranging from trade tensions to artificial intelligence. connell mcshane is live at the wall street journal tech conference with more. hey, connell. >> reporter: hey, dagen. it's a chance for the city which has been through so much this week to get beyond those protests which are expected to resume over the weekend, and have some wider discussions and that's what we've been seeing here today with the u.s.-china trade war certainly the backdrop to almost all of those discussions. i'll give you one example of what's being talked about here in terms of the ripple effects of the trade war and then maybe talk about some others. glen fogle, the ceo of booking holdings, kayak or open table, you know booking holdings. he has a good sense of travel flow around the world and i was talking to him about the fact that last year for first time there was a drop in the number of chinese tourists coming into the u.s. and wondered what that might have meant. here's what he said. >> that was surprising, declined 5.7%. i think a lot of people were surprised by that. i think, look, no doubt the political environment can make some people in china say you know there, are a lot of places to visit in the world, i don't need to go to the u.s. right now. i can go somewhere else. >> reporter: that's one way we see the trade war coming into effect. more broadly, the economic slowdown china according to just about everybody you speak to is real. you see that in the headlines, you guys have been reporting today, whether broadcom cutting their forecast or the manufacturing data coming out of china. speaking of china, we're heading there, driving into mainland china tomorrow and we'll be reporting from the city of shin zen on monday. we confirmed we will have special access to huawei's heads headquarters on monday. we'll take you inside huawei and in effect take you inside the trade war with the united states. that's all coming up on monday. for now, it's back to you. dagen: connell, that's incredible. i can't wait for that. that's going to be really spectacular many again, this is one of the core issues that the u.s. is tackling. we got the warning from broadcom this morning about a sales shortfall. it does have an impact in the u.s. for sure. connell, thank you. connell mcshane. coming up, amazon lawsuit, the tech giant accused of recording children without permission. plus, stranger burger, a new whopper celebrating stranger things as nickelodeon gives good burger fans something to chew on. ♪ you are the thunder and i am the lightning. ♪ and i love the way you know who you are. ♪ and to me it's exciting. ♪ your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. metastatic breast cancer is relentless, but i'm relentless too. mbc doesn't take a day off, and neither will i. and i treat my mbc with everyday verzenio- the only one of its kind that can be taken every day. in fact, verzenio is a cdk4 & 6 inhibitor for postmenopausal women with hr+, her2- metastatic breast cancer, approved, with 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and white blood cells and platelets, decreased appetite, headache, abdominal pain, tiredness, vomiting, and hair thinning or loss. i'm relentless. and my doctor and i choose to treat my metastatic breast cancer with verzenio. be relentless. ask your doctor about everyday verzenio. dagen: we talked about this earlier, chip maker broadcom hit hard by the u.s. ban on huawei equipment. cheryl casone has the details. cheryl: just talking about that to connell, broadcom said it would make $2 billion less in annual sales than expected. this could spread across the semiconductor industry. qualcomm and intel are reconsidering outlook right now. broadcom is down more than 9% in the premarket right now. huawei has decided to delay the launch of its foldable 5g smartphone by three months. the company wants to make sure the phone doesn't have the same problems as samsung's foldable phone. this comes as huawei phones are expected to be cut off from updates of google's android system following the u.s. sanctions. there are new concerns about kids' cereal. 21 popular cereals and snacks have been found to contain traces of the cancer causing chemical found in the weed killer roundup. this is according to tests that were conducted by the environmental working groups. the product tests are made by -- the products are made by general mills, including cheerios and the nature valley line of products. general mills says it's working to minimize the use of pesticides on inagreed yen. maria bartiromo had a chance to sit down with real estate developer and billionaire larry silverstein who talked about how the trade war with china is affecting real estate. >> chinese have pulled back, the alsoligarchs seem to have vanis. interestingly, if you look at the funds -- maria: the sovereign wealth funds. >> the sovereign wealth funds with multiple trillions of dollars to invest in hard assets, real estate, any time i get to speak to them, to the heads of those funds, the principals, i always ask where do you want to put your money, and they always say the united states, because it's safe. they know it's safe. we have a system of laws, that real estate is protected, their investments are protected. cheryl: you can catch more of maria's interview tonight on maria bartiromo's wall street at 9:00 p.m. eastern time. it's going to be fascinating. nobody knows new york real estate like larry silverstein. dagen: indeed. thank you so much, cheryl. let's keep moving on this morning. coming up, trade in focus, some of america's biggest companies speaking out on tariffs. what they're saying, next. plus, sports in the art world, one artist taking his work on the field. details ahead. dagen: taking a look at markets this morning. we have losses across the board, 50 point loss on the dow futures at the moment. we're going into today's trading session with gains for the entire week. so the dow is up almost 102 points for -- that was yesterday, for the week the dow is up 100 -- almost 123 points. so that's what you're looking at in order to round out an up week for the markets. what is our next guest looking at? senior portfolio manager bob dahl, bob, i always look at what the treasury market is doing, the 10 year treasury yield was below 2.1% yesterday and the markets, the futures market is pricing in an 89% chance that the fed will cut rates next month. that's incredible. if you think that the fed needed to cut rates next month, after raising them in december, why is the market not -- the stock market not shakier? >> that's a great question. when you throw up the fed, the issues of trade and the uncertainties and now we're adding what's going on in the middle east, it says okay, what are second quarter earnings going to look like and the balance of year projections and i can't imagine we're going to get more good news. we might get more negative news. i think the stock market is a bit vulnerable given all we've said. >> it's kevin kelly here. you were talking about the stock market. one of the thing that's weighing on it today, is what came out of broadcom and the implications of what's happening for the second half of the year, especially because of the huawei situation. then we've got regulation risk happening in tech. we've got the ftc, we've got the department of justice looking at facebook, google, so we have that weighing on the tech sector. are we going to have a really hard time with march he get get leader -- market leadership in the technology space to get us to a 3,000 level or 2,900 even? >> i think so. i think we're going to have a lot of rotation, the absence of leadership, which is generally more negative than is positive and you don't get 600 ceo ceos writing to the president about something if they don't care given their businesses. we've got question marks out there. and the market continues to flirt with all-time highs, it's risky in my view. i don't want to be overly negative. i don't think we're going into a recession. on the other hand, risk/reward is concerning for me. >> lindsey bell here. i'm wondering what your take is on what dagen mentioned, the expectations for the fed to cut rates. we know that the market usually performs very well in the six and 12 months following a rate cut cycle, especially if we aren't in a recession. do we need a rate cut at this point? economic data shows there's areas and pockets of weakness. but the economic data is strong, the consumer is very strong. is this the next move the fed needs to take? >> that's a great question. obviously, that's the debate. i am surprised the probability of a cut is that high. i think the fed is saying look, maybe we didn't or shouldn't have done december, maybe we can take that one back for the word insurance, as we've heard. if we're going to get several fed cuts here, some are saying as many as three in the next nine months, that means there's going to be a lot of economic and more importantly earning disaappointments. that's what we have to be worried about. in the rear view mirror, the economy looks okay. but when we go forward, we certainly have uncertainties and, therefore, the opportunity for a debate, are we okay or not. >> can i quickly just ask about those earnings disappointments. is that going to be because company's margins are going to shrink because they have to reinvest in their businesses to generate organic growth, let's talk about google, spending $13 billion on data centers because they want online gaming platform. is that the real concern here, that companies just have to pour so much money to generate topline revenue? that is certainly part of it. you can't have wage rates moving up more than 3 and not have labor cost pressures in addition unless you get really good productivity. but i think part of it is the uncertainty going forward and, therefore, businesses and ceos kind of pulling back on future spending until they get a better idea of the landscape. i think that's the question mark. dagen: bob, you're clearly concerned about equities right here. how do you -- where do you put new money to work? again, do you really want -- would you put cash into a 10 year treasury with the yield below 2.1%? [ laughter ] >> i don't think -- i don't think that's a great bet either. i'm going to have a little powder on the sidelines waiting for an opportunity to buy a little bit lower, in my view. stocks continue to go straight up, at least i've got a bunch of money invested. so i think a little caution probably makes sense. dagen: what would your cash allocation be here? >> whatever normal is for you, i'd have 5 to 10% higher than that. the stock market hit 2950 january of last year, last fall and a few weeks ago. we're kind of stuck. we're making no progress. so we need more good news to break through and the market's got to sort out what that's going to be. dagen: do have you a he question? >> it's jack brewer. the ipo market has continued to be hot. do you think you're going to see a slowdown any time soon? give me your assessment on that, please. >> as long as the stock market stays 2850, 2900, ipos will be fine. if we get more weakness, then the ipo market will pull its horns back in. you're right, it's been fast and furious. there's a lot of money on the sidelines for these deals. dagen: bob, good to see you. bob dahl, always a pleasure, sir. u.s./rau.s. iran relations, whas next, that's straight ahead. amazon lawsuit, the tech giant accused of recording children without the permission of the parents. more ahead. ♪ if you're going to let me down, let me down gently. ♪ don't pretend that you don't want me. ♪ water under the bridge. twenty-four people came together to sign an agreement that created the stock exchange. just the right elements coming together. it started when scores more people came together, just down the street and traded bonds that helped pay for the revolution, and the nation it created. it started in an office on the corner where the right people witnessed the telegraph and brought information and humanity together forever. it started with the markets, bringing together steel and buildings and silicon and medicine and rockets. we believe the possibilities of life and investing are greater when we come together. it's why for eighty years we've connected ideas with technology, data with inspiration, investors with solutions. so that every day together, it all starts again. ♪ ♪ heannouncer: more details incoming involving volkswagen and the growing scandal. dissatisfied customers filing complaints against the german auto maker. ♪ because a vision softly creeping ♪ ♪ left its seeds while i was sleeping ♪ ♪ and the vision ♪ that was planted in my brain ♪ ♪ still remains ♪ within the sound of silence ♪ in restless dreams i walked alone ♪ ♪ narrow streets of cobblestone ♪ ♪ when my eyes were stabbed ♪ by the flash of a neon light ♪ ♪ that split the night ♪ and touched the sound of silence ♪ dagen: welcome back ment i'm dagen mcdowell in for maria bartiromo. it's friday, june 14th. your top stories. futures pointing to a lower open. less than an hour from now, we get retail sales for last month. we're expecting a bounceback, expecting gains, maybe that's good news for these markets which through yesterday are up for the week. biggest gainer are the dow transports, up nicely this week. but this morning again, tech getting pulled down. chip makers in particular under pressure after broadcom warned of lower sales due to the huawei ban. broadcom, amd getting hit, especially hard. apple and intel, take a look at those stocks, also to the downside, although apple off lows of the morning, down 1.3%. the worst stocks are the dow premarket, apple and intel. poised to shave about 30 points off the dow at the open. checking europe, we have losses across the board to report. in england, france and germany, all to the downside. similar in asia overnight, the only gainer is the nikkei in japan. industrial production, the weak report coming out of china, also retail sales rising 7.2%, that's slowest pace since 2003. u.s. retail sales out at 8:30 a.m. eastern, we'll bring you numbers. new developments in the investigation into the string of mystery deaths in the dominican republic, what authorities think might be to blame. and warning for parents, amazon might be listening and recording your children. details on the new lawsuit over echo devices. plus, burger wars, burger king going upside down in honor of stranger things. plus, nickelodeon opens up a very special pop-up store in honor of the reboot. to our top story this half hour, mideast tensions on the rise following the tanker attack near iran. the u.s. releasing video of what it says are iranians removing an unexploded mine from one of the attack vessel. mike pompeo speaking on this yesterday, blaming iran. >> it is the assessment of the united states government that the islamic republic of iran is responsible for the attacks that occurred in the gulf of oman today. this assessment is based on intelligence, the weapons used, the level of expertise needed to execute the operation, recent similar iranian attacks on shipping and the fact that no proxy group operating in the area has the resources and proficiency to act with such a high degree of sophistication. dagen: iran he denying involvement, saying this morning it is responsible for the security in the strait of hormuz, calling the united states' move to blame iran alarming. joining me now, former commander of the u.s.s. cole, kirk liphold. great to see you, as always. your reaction to what you're seeing right now? >> well, i think what you're seeing, dagen, is that the united states is slowly building a solid rock-proof case where the iranians can be proven to have engaged in these activities. while clearly the video that we've seen with the boat alongside removing the excess mine off the ship that didn't explode, that's one piece of it. i think we still have much more steps to take because we need to figure out how did they get it there, who put it on there, and why are they engaged in this type of activity before we really get the international community engaged on this issue. dagen: how do we assess that? what is the defense department doing to figure that out and get more answers? >> well, at this point in time i know that assets are being reoriented so we can take a look. i'm sure that the analysts at the office of naval intelligence are looking at what assets are available in what ports, who is moved, who is out in the gulf, what ships and boats are out there operating, what do movements appear to be, what is the vulnerability of the ships. all of that is being put together now. i'm sure some long hours and midnight oil is being burned as we try to gain more proof that the iranians rock-solid proof that they're behind this. dagen: could this be a false flag, some kind of -- i don't want to say marginal but i think rogue elements in the iranian regime might be how you would phrase this? >> well, i would look it this way. given how iran runs, you how can you have a false flag operation when they engaged in this type of activity literally for decades. so if this is going on within iran, this is clearly because you have mulla interior to iran that are causing the problem to exist. false flag like another country, saudi arabia or others, i don't buy into that and i think if iran's got an internal problem, i'd advise them to start figuring out who is behind it and how to get it fixed. they're creating the problem in the international waterway with a large chunk of the world's oil goes through there. dagen: the united states was clearly alert to this danger with the decision just in the last month to send the u.s.s. lincoln, the aircraft carrier, to the gulf along with destroyers and cruisers. so again, were we anticipating something of this nature happening? >> i think that we were looking at it was more of a broadcast signal than anything else. putting b52s there, an aircraft carrier strike group with ships there, that's one foot in the door. we could not anyway meaningful ian gauge iran with those assets that are right there right now. it would take more investment in the region. i don't believe the united states should do it alone. i think we should build a larger picture for the international community to understand what's happened, that this is a danger. if we do not take action on this as the united states, to hold iran accoun accountable for whas going on in an international waterway, what signal might that send to china when it comes to the south china sea and the militaryization of that area. this is an international waterway. people have a right of innocent passage to transit through there. we need to keep the flow of oil going for the world's economies. iran is being squeezed with the economic sanctions being put in place. this is an unacceptable manner for them to attempt to you shut down the waterway. dagen: what are the next steps for us? what should we watch out for in terms of building the coalition or what should we do? >> i think the biggest thing, dagen, and that's a great question, is to really peel that onion back. where are the tankers when we think these mines are being put on? why is there a vulnerability in some of these ports and what's the protection around the vessels now? what are we trying to do as they're getting filled with oil? how are the iranians getting out there to put the mines on them? and what can we do to try and help them? it hark ownens back to the tankr wars in the late 1980s where we may have to provide escort duties for the tankers to ensure they stay safe, that they're in fact able to transit that waterway without a threat from iran. but i think that now it is building that case where we get the rock-solid proof to show that iran is behind this so that other nations can begin to apply both economic, diplomatic pressure so that military becomes that option of last resort if we have to do it. dagen: but this is evidence, this action by iran, this is evidence that the sanctions and the financial pressure that we have put on that nation is working, because this -- again, aggressive and desperate. >> absolutely. when you're looking at it, we use those instruments of national power, clearly using this economic instrument in coordination with other nations by having sanctions in place is damaging to the iranian economy. it is forcing them to rethink how they're doing it. nothing's going to stir up national fervor quickly than getting into a fight with the great satan. i think that's an option that they're trying to create the conditions for and do, the united states should not rise to that bait but we should continue to work with the world. clearly, people are seeing after we pulled out of the bad nuclear agreement, the jcpoa, put sanctions back into place, other nations are complying with it. they're seeing what's happened and the ramifications from iran in doing that. clearly, taking this type of military action on behalf of iran, that is not the way to go and we need to send a strong signal, this will not be tolerated and there will be consequences but let's get that proof and hold iran accountable for these action. dagen: i've said this for years. our energy security is our nation's security and it gives us an incredible amount of strength over nations that hate us, that want to harm us, that happen to produce oil. they can no longer use oil as a weapon because we're the number one producer in the world. >> absolutely. i think when you also look at it, it should give a lot of these state governments that have stopped the transit of oil, whether it's from the back ken oil fields or others, going to the east and west coast to allow to be refined or shipped overseas, if they want to box bk the pipelines, it's undermining energy security which is enabling nations like iran and others to have to get oil out of the middle east. the less dependent the united states is, the less dependent we can make other nations on that type of oil, the more secure we are going to be here at home and these other nations can help build not only our economy but make theirs stable as as well. dagen: kurt liphold, great to see you. >> you as well. thank you for having me on. dagen: have a great weekend. coming up, art enters the sports world. my next guest revealing in a fox exclusive a never before seen work of art for the major league baseball all-star game. straight ahead. let me ask you something. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company ...or trips to mars. $4.95. delivery drones or the latest phones. $4.95. no matter what you trade, at fidelity it's just $4.95 per online u.s. equity trade. who used expedia to book the vacation rental that led to the ride ♪ which took them to the place where they discovered that sometimes a little down time can lift you right up. ♪ flights, hotels, cars, activities, vacation rentals. expedia. everything you need to go. expedia. the doctor's office might mejust for a shot.o but why go back there when you can stay home with neulasta® onpro? strong chemo can put you at risk of serious infection. in a key study neulasta® reduced the risk of infection from 17% to 1% a 94% decrease. neulasta® onpro is designed to deliver neulasta® the day after chemo and is used by most patients today. neulasta® is for certain cancer patients receiving strong chemotherapy. do not take neulasta® if you're allergic to it or neupogen (filgrastim). an incomplete dose could increase infection risk. ruptured spleen, sometimes fatal as well as serious lung problems allergic reactions, kidney injuries and capillary leak syndrome have occurred. report abdominal or shoulder tip pain, trouble breathing or allergic reactions to your doctor right away. in patients with sickle cell disorders, serious, sometimes fatal crises can occur. the most common side effect is bone and muscle ache. if you'd rather be home ask your doctor about neulasta® onpro. pay no more than $5 per dose with copay card. dagencheryl: i'm cheryl casoneh some of your headlines. boot lowing liquor could be the source behind recent deaths in the dominican republic. police are investigating whether tourist who recently died in the d.r. were poisoned by counterfeit liquor. the new york post is reporting officials want to know who supplied the alcohol. a new york woman is the latest american to die in the caribbean nation. she reportedly found dead of a heart attack in her hotel room earlier this month. and now an update on the david ortiz shooting investigation. police are saying that the alleged gunman is wanted in new jersey for two armed robberies. nine people have been charged in the shooting so far. well, amazon is accused of recording children without consent through the alexa devices. a lawsuit is claiming that without consent, amazon violated recording laws in at least agent states including florida, illinois and pennsylvania. shares of amazon lower by half a percent be in the premarket. big news for burgers. burger king turning things around, selling stranger things upside down whoppers. patties will be served in classic packaging from the '80s in honor of the the retro show's third season. speaking of retro, fans of good burger will be able to chow down on a pop-up restaurant. the network promises a new surprise as well as the secret sauce. all right. in case you missed it, here are some of this week's top moments from the show. >> islamic republic of iran, a government controlled by terrorists, for years has been moving aggressively throughout the middle east, supporting terrorists and really controlling syria moving into yemen and the trump administration to their credit turned it around. the president broke out of the iran nuclear agreement, squeezing iran with sanctions economically. they're on the defensive. so this is one of the ways that they can fight back. this is why we have to hang tough right now. maria: huawei settled lots with a number of american companies for stealing trade secrets. they settled with cisco, motorola, t-mobile, microsoft, all of these lawsuits happened in the last eight years and you've been forced to settle. so how do you say there were no cyber breaches? this is what we discussed, you and me, the last time, to completely ignore all of these lawsuits that were settled because huawei stole trade secrets. >> the fact is, the industry has quite a checkered past and quite a bit of litigation. in terms of significant cyber security wrongdoing, there's been no evidence in 170 countries and the u.s. could give no evidence of that to the u.k. or germany or our other allies. maria: the evidence i mentioned, you settled the lawsuits, they were about stealing trade secrets. united technologies and raytheon, they say will make the industry more competitive. one hedge fund is pushing back. bill akman says it makes no sense. he's ready to publicly denounce it. >> no, bill and dan are not perhaps happy with the deal because of the short-term dilution. the fact is, you have to take the long view here. and i think as tom and i have talked over these last six months, we have unlimited potential to grow this business through the innovation agenda, through all of the 60,000 engineers that we have, the $8 billion of r&d. this is going to be a powerhouse company that will meet all customer needs and provide big value to our customers over time. >time. it's. >> it's a win-win for shareholders, win-win for employees, a win-win for the country itself and definitely a win for our customers. >> an under the anti-trust laws, when you have market concentration of more than 30% which is what would happen if sprint and t-mobile got together, that's presumed to be anti-competitive. i'm worried about rising prices, about the squeeze on connecticut and american families that they feel every day. >> connecticut ranked one of the worst states for business by forbes last year. >> stay away from connecticut. stay away from new york, new jersey. they're all so bad. that's why a lot of people live in pennsylvania where they have a 3% income tax rate. maria: characterize where we are in terms of women on-board. >> it's a slow process, maria. it's trickling -- the trend is barely going up. but there's a lot of work to do. i out-worked my colleagues. dagen: find your champion, that's the best advice. find people who see in you, what you see in yourself. maria: i outworked everybody. dagen: still do. >> not everybody can get these. you had to have a wait to get them. there's only about six of these known of any quality. this is from the late '20s, that era. you see the beautiful condition, original yankees across the front which is the only time in their history that that franchise name was across their jersey, ever. so as a style it's very rare. should be exciting to see if it hits the mark. we'll see. we're the slowskys. we like drip coffee, layovers- -and waiting on hold. what we don't like is relying on fancy technology for help. snail mail! we were invited to a y2k party... uh, didn't that happen, like, 20 years ago? oh, look, karolyn, we've got a mathematician on our hands! check it out! now you can schedule a callback or reschedule an appointment, even on nights and weekends. today's xfinity service. simple. easy. awesome. i'd rather not. ♪ america,. ♪ how i love you, america. ♪ how i love you, america. ♪ dagen: welcome back. larger than life, what artist whose work is featured in say ports and cities around the world is debuting a sports themed collection along with an exclusive piece for the major league all-star baseball game which we are showing you this morning. joining us now is pop artist charles sezena. nice to see you and your beautiful works of art. let's start with the piece for the all-star game. how did you end up he creating that. >> i'm from the bronx originally. i approached major league baseball many years ago to do a yankees piece. they loved my work. in 2003 they commissioned me to do the artwork for the all-star game in chicago. i started doing that. i do the program covers every year, the official poster. this year it's going to be in cleveland. this piece depicts everything about cleveland. it's sort of pop culture. when i create a piece, it's all about the city, the excitement around a game that comes to especially a town like cleveland. it's a really big thing. dagen: i love cleveland. i'm a huge fan di. >> i lived in cleveland. dagen: if you've never been to cleveland, it's hard to describe the energy in that city. because it still feels like a small town. >> it was easy for me to draw it. i'm a new yorker. for many years i had a gallery show in my work in cleveland. i used to go every year. i got to know the town intimately. when i have to draw a piece for the super bowl or all-star game and i know the city, it makes it easy to do. dagen: is that work for sale or has it already been -- >> you are premiering the piece. it hasn't been shown yet. it's going to be on television in cleveland and all around, an official poster and book, program cover is coming out. dagen: is the original for sale? >> yes, all my artwork is for sale. dagen: how much would that sell for? >> i'm not really sure. when the gallery or whoever is retailing it, i don't always know. it's probably in the area of, i don't know, $6,000 or something. dagen: that's fairly reasonable, begin the amount of work that goes into it. jack, ask charles a question. >> the detail, i can't take my eyes off of this work. as a former professional athlete, i collect a little bit of art, tell us a little about what goes into this. dagen: i'm sorry, my finger -- i need to learn to stop pointing, it's in my shot. show the american flag piece as charles talks. the level of detail is astonishing. >> i paint pop culture and the work is represented worldwide. when i create a piece there is first the original drawing that i do and then cutting and gluing process. i love pop-out books as a kid. that sort of got me into doing 3 doing-d. my father said if you're going to be in art, do something that's different. i brought my love in pop-out books. i went to school in new york and i did silk screening and painting and that's how it started. there's endless hours of cutting and gluing on each piece. dagen: please come back. you can see his work at the king of prussia mall. retail sales next hour. experience the style, craftsmanship and technology that have made the rx the leading luxury suv of all time. lease the 2019 rx 350 for $399/month for 36 months. experience amazing at your lexus dealer. of a percent. . dagen: i am dagen mcdowell in for maria bartiromo. friday, june 14 your top stories 8:00 a.m. eastern. >> futures pointing to a lower open but off lows of the morning, so far, 33-point loss on the dow futures. this was chipmakers under pressure broadcom warned of lower sales due to huawei ban investors waiting on may retail sales report due out in less than 30 minutes, he is good nice bad news for the market? with how many -- 89% chance fed rate cut next month futures mark telling you, up for the week transports up morn more than 2% declines across the board in england, france germany in asia overnight same slight gain on nikkei in japan, weak industrial production and retail sales out of china, that pulling down markets, there. also watching commodities out of gulf of oman new video showing what u.s. says is iranian naef boat removing unexploded mine. from a tanker, we actually have a pullback in the cost of crude oil. 52 dollars 14 cents a barrel the moment. >> first notre dame cathedral will hold first mass since that disaster. oh canada. for on thea raptors winning first nba championship draining ready to celebrate coming up, cfr investment strategists lindsey bell, kevin kelly brewer group cfo former nfl star jack brewer, are you surprised by reaction or lack of reaction in the oil market this morning. >> you know what else came out iea on with eia opec cutting complan for oil this year fear of slowing growth i think oil is reacting to that, despite all geopolitical tensions in gulf of hormuz i think traders having a hard time weighing two things oil prices going up because of geopolitical tensions could they come down further because of weakening demand. >> i am not surprised at all i don't think the market is either listen geopolitical risk of a barrel of oil has been moved been removed he several years opec plus one or two whatever countries they try to get in talking about doing supply cuts, right we know there is a glut of supply out there, so it is going to take moern just iran kind of saber-rattling to really get the price to move on geopolitical tensions. dagen: cop story speaking of tens tariff concerns how about that, tariff tens hundreds american companies walmart costco target sending a letter to president trump opposing tariffs larry kudlow speaking yesterday about the upcoming g20 summit potential meeting between president trump and chinese president xi xi listen to kudlow. >> president trump indicated strong desire for a meeting. but the meeting is not yet arranged, formally he also indicated that if the meeting doesn't come to pass, there may be consequences. but he would prefer the meeting. dagen: joining us now arkansas congressman member of house financial services committee great to see you. >> good to be with you good morning. dagen: where from here in terms of the trade fight u.s. has chosen to wage with china? >> well a trade fight that has been two decades in the making, since china joined the wto. and president trump has got maximum pressure there, china economy responding we are concerned about impact of tariffs on not just american farmers but if it goes through with the -- the whole trade tariffs installation the impact on inflation and the impact on consumer looking at numbers nullly implemented modest gdp in america more borne in trouble in chinese economy i am concerned about inflationary aspect and concerned about impact on consumers if fully imperceptiblied we need good deal with china restructures rebalances our arrangement get to american policies they pursued for 30 years. >> important to note they've had this plan in place several years trying to extract, 2025 plan through 2035 plan leads to 2049 plan means they are number one military in the world right it ways part of their plans for celebration, of their communist party so -- you know aside from what sort of happening in regards to china who knows whether president trump and president xi are going to meet. how do we take on -- a -- an economy where there is going to undercut all prices we look at buildout 5g we have no key in there supplying inferior products how do we combat that. >> i think it takes, more than u.s. working alone we need support of japan, support european union, 35% two of way trade with china, that gives us more clout in really arguing that we should end their america tillistic policies intellectual property theft, the deal that was in draft form took first step as i say in two decades to rectify, this approach they have taken to global trade we will benefit but eu will benefit and japan will benefit, that is why america is being strong here, so important. we need allies to collaborate with us on this mission. . >> what is the time line on trade do you see escalation in near-term? to be followed perhaps backing off of tariffs are tariffs to stay tie hope tariffs are not to stay i opposed across the board 232 steel and aluminum tariffs i think they disrupted supply markets hurt goods manufactures in my district arkansas elsewhere targeted pressure like president trump is using compelled china to negotiating table something we haven't seen that part is good. but we need a deal that both sides can declare, smpg beneficial we need to open markets for our goods, in china we need to end intellectual property theft, we need to get them more of a global player on a standard set of rules, whether talking about lending money one belt one road or whether talking about trade, in their markets. >> do you think targeting specific companies like huawei is going to help bring them to the table to negotiate and address the major structural issues like ip theft, transfer a, et cetera, so that when you see egregious excel something concerned be global for cyberrisks national security risks connected to that yes, it does this is part of it a resetting of our relations with china for the very first time in three decades, economically, national security wise we want them to be a leader in the world use size for good in the world to play by world's rules, not by their rules. dagen: i think people need to stop being shocked when president trump does something tries to fulfill a promise he made to people who voted for him do you have a question. >> yes fed policy a lot of ways fed holds the key to trade war do you think we can count on our as we get into trenches of trade war. >> i don't think you can solve trade war or impact through monetary policy so i think the fed is looking at the macrosigns that include trade the oil markets, includes globally economic indicators, and right now america is the brightest spot in the global economic story. but i think they are concerned about inflation from tariffs, that my effect interest rates and they are concerned about a gobble slowdown, but tariffs i don't think are as big a part of that story, as i think, the headlines might indicate. maria: good to see you now great to be with you. >> come back always appreciate the southern voice another one at table. >> the tone. >> would you -- back sarah huckabee sanders if she runs for governor. >> i have known her since 12 sarah huckabee sanders great leader way welcome her home. >> indeed take care good to see you turning to the tensions if the gulf of oman united states blames iran following attack on two tankers in strait of hormuz, or near. >> about secretary of state pompeo yesterday saying that iran is responsible for the attack on two tankers in the gulf of oman. pompeo saying iran is landmarks out disrupting oil markets because, he wants the u.s. or they want to u.s. to lift their maximum pressure, campaign. >> this assessment is based on intelligence, the weapons used, the level of expertise needed to execute operation recent similar iranian attacks on shipping the fanning no problemsy group operating in the area has resources and proficiency to act with such high degree of sophistication. >> releasing video showing iran trying to remove evidence from the scene of yesterday's attack in the video you see iran's revolutionary guard removing in exploded mine from an oil trademark they targeted yesterday iran denying all responsibility saying u.s. waging a iran phobic campaign against them this happens what i am japanese prime minister shinzo abe was meeting with ayatollah in tehran the president appreciation abe making time to meet with ayatollah says the president says he is nowhere near ready to make a deal. >> in washington at the white house we are waiting on retail sales due out less than 20 minutes from now we bring you the number and analyze, is good news maybe bad news for stocks? because again people are counting on that federal reserve interest rate cut really next month. history on the courts raptors taking home first nba championship highlights how drake is celebrating the big one, next. ♪ ♪ your daily dashboard from fidelity. a visual snapshot of your investments. key portfolio events. all in one place. because when it's decision time... you need decision tech. only from fidelity. you need decision tech. when your psoriasis is bad, it can be hard to see what's possible. but the possibilities become clear with taltz. the 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employees. and then allow their employees with pretax dollars to containing funds and purchase insurance. it is more choice the employees can choose whatever insurance they believe is appropriate, and as importantly more portability because when an employee goes from one business to another, they can keep their insurance because in essence paying for it themselves through employer money. >> administration says the rule is expected to expand coverage by 2029, as estimated 800,000 people uninsured. >> notre dame opening doors tomorrow evening for first mass since massive tire tortured paris landmark in april only 20 to 30 people are loid inside, worries about safety, notre dame foundation received about 18 million dollars to be used towards rebuilding that cathedral airbnb recreating around the world in 80 days -- i thought sports lucky folks getting chance i will get to sports in a minute, lucky folks getting chance to travel across 18 countries, 8 modes of transportation a hot air balloon can book 80-day trip all conclusive $5,000 starts june 20 now to sports, because congratulations, to the toronto raptors winning first championship in franchise history defeated golden state warriors in a game to the last second it was awesome the first major sports title in canada, since 1993. and the warriors lost more -- klay thompson wouldn't up for a dunk came down wrong way team says he core acl warriors lost kevin dur ruptured achilles. >> rapper announcing on instagram releasing two new songs drake named global ambassador in 2013 courtside, of course, for all playoffs home game all the news back to you. dagen: i think seth curry called drake to congratulate him on championship class acts. >> money in the grave you can't take it with you when you die i guess now you can, positive news from a black audience more positivity, please. dagen: you bring it every day waiting for retail sales due out less than 15 minutes bringing you a number analysis what it means for health of the u.s. economy list out democratic national committee unveiling 20 candidates who will take the stage later this month former dnc chairman ed rendell, joins us with his take next. ♪ hmm. exactly. liberty mutual customizes your car insurance, so you only pay for what you need. nice. but, uh... what's up with your... partner? not again. limu that's your reflection. only pay for what you need. ♪ liberty, liberty, liberty, liberty ♪ can't see what it is yet.re? what is that? that's a blazer? that's a chevy blazer? aww, this is dope. this thing is beautiful. i love the lights. oh man, it's got a mean face on it. it looks like a piece of candy. look at the interior. this is nice. this is my sexy mom car. i would feel like a cool dad. it's just really chic. i love this thing. it's gorgeous. i would pull up in this in a heartbeat. i want one of these. that is sharp. the all-new chevy blazer. speaks for itself. i don't know who they got to design this but give them a cookie and a star. you're 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pennsylvania governor former dnc chairman, governor ed rendell great to see you. >> pleasure good to see you go a is. >>. dagen: who accountant make i know molten was one of the individuals who did not make the cut what do you make of this lineup? >> well, i think a strong lineup but interestingly this debate, to break down each candidate has nine minutes to answer questions that is pretty hard to impress anybody but there are a couple of minidebates. >> i debates i think the one to watch mort interest elizabeth warren trying to take the manuel away from bernie sanders, you know she made great strides in the last month, taking as you understand voters she wants to tell them she is newer fresher brighter, energetic, she has a real opportunity to do that by rolling out her programs and taking bold stances, that is one thing would i watch, number two, joe biden can joe biden did he deflecting what has got to be criticism coming his way look presidential at the same time try to keep focus on donald trump so rising above the debate but all the other democrats that is second thing to watch. then third is -- pete buttigieg has come up to vince 37-year-old mayor relatively smalltown knows enough to be to be president show engaging personality he will. dagen: about joe biden what criticism specifically and how does he kind of rebuff that? >> well, for example, some of the more progressive candidates might attack him for beingbeing supporter of the hyde amendment joe biden has to say quite clearly look the reason i changed my mind on hyde amendment because of all the activity in southern western states that stripped planned parenthood to give health seniors we've got to have an avenue for women he has to stand on issues not lose temper not crotchety joe has great permit i think he can he can do it this is not joe biden of 1988 or 2008 has been president of the -- vice president of the united states. he has been integral part shaping government policy has grown tremendously in 8 years i think going to demonstrate that. >> do you worry that the debates because you do have to -- everybody gets pushed so far left, that then whoever comes out on top next year is so far left in what they said on debate stages during the primary campaign that they it difficult take on president trump. >> that is a real serious problem, there is no question about that. i think if mitt romney didn't tac.k. so much to right to get nomination in 20 twvl might have been elected president the best way to domestic violence that if you are joe biden people say do support you senator sanders' plan for free college for everyone jee is going to look in the camera say i would love to but we can't afford that here is what we can do we can eliminate -- drastically reduce student debt by one, two, three point program, i think the american people will react favorably to that. dagen: if president -- joe biden -- gets booed he can shrug that off, hey, i don't want 180 million people health insurance away -- and -- >> ridiculous. >> great to see you. thank you so much you come back soon. >> have a great weekend. >> waiting on retail sales due out moments the number ahead comes as 600 american retailers issue a stark warning to president trump on the tariff fight with china. what they are saying next. are into coffee, tech, and retirement planning. the perfect retirement for me is doing the things that i want to do, not the things i have to do. unlike seattle, less than half of americans participate in their employer retirement plans. so what keeps people more engaged in their retirement? i want to have the ability to easily transact online, great selection of funds, great advice, everything in one place. helping people in their working years and beyond. that's financial wellness. talk to your employer or start a plan at prudential. going back to the doctor just for a shot. with neulasta onpro... ...patients get their day back... ...to be with... ... family... ...or just 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mcdowell in for maria bartiromo. friday, june 14 we've got breaking news coming up in less than an minute on retail sales numbers for may economists expecting increase 6/10 of one percent take out autos month over month expecting three tenths of one percent analysis straight ahead 37-point gain on dow futures, chipmakers under pressure broadcom warned of lower sales due to huawei ban, i welcome, two analysts who are aaron is here, burke strategic resource group managing director i am not asking you any questions we only have 15 minutes but i want to bring people good to see you you burt aaron good to see you number in 10 seconds the markets are up this week we have a little bit of a pullback watch how futures reacting is good nice bad news good news is it meaning federal reserve does not cut interest rates? >> retail sales are up 0.5%, so that is a slight miss, 0 -- an xautos, 0.5% gain excluding autos a beat better-than-expected concluding autos top line number up half of 1%, 5/10 of a percent in line,better than expected x autos slight miss after a decline in retail sales in april to bit avenue bounceback here in may, better th than. >> reacts. >> strong retail sales from a strong economy. and while internet seattle growing 10%, autos doing better homes doing better categories sporting goods down nine percent as america playing sports less getting fatter affecting everybody, everybody from dick's sporting goods to gamestop others retailers, can show consumers great savings retailers winning no effect from tariffs so far prices only up 3/10 of 1% on import basis. >> good news you see this showing up in u.s. futures april said was down was revised too gain from a loss in the month of april to a retail sales gain 3/10 of one percent for may 11 of 13 major categories to the plus side aaronish in reaction. >> i this this is driven by high end luscious sales by mass market sales we saw yesterday with restoration hardware, lululemon dollar general there is not much traction in between so those are areas would i continue to look at to see positive gains we had incredible increase in march, i do think that we, of course, have priced in the -- rate cuts already, so would be concerned if they don't actually happen. >> so -- the question here is how -- how he do retailers actually just a supply chains with tariffs coming up, we've got back-to-school coming, so that is a looming threat that is out there, where it is like listen a lot of the -- the shoes for example coming from china now with tariffs how is that going to throw off consumer spending especially when it comes into critical month august and september? >> from working in the supply chain can literally move country to country so you south asia vietnam et cetera, traditional manufacturing countries it is a tough game of proverbial chicken but china ultimately with higher prices is going to lose support also retailers are strategically smart had tremendous inventory builds. with over capacity in manufacturing worldwide, supplies will be tight still be sufficient for back-to-school one in july and back-to-school two in august to your present points. >> you did see a rebound in nonstore retail declines last month that is your amazon your online retailers of the world so that certainly is a positive. do you think that the only presence is cuting into prices? the when you look at inflationary data parallel has not seen much increases. >> you are raising key points with price discovery of consumers, they can find lowest prices whether off price tjx burlington macy's, amazon you referenced now walmart powerhouse on line target announcing lower deliveries same day next day yesterday through target.com, the internet sales we did a survey at cornell where i teach in retailing marketing, 50% of consumers surveyed across the country, do no shopping in bricks-and-mortar stores of half in amazon with amazon having 38 share in online and target walmart others costco racing to catch up you are right the prices are going down, because consumers are smart and even better educated than before. on price points where value is even online -- >> i want to bring in you here -- do consumers have some real strengths in the months ahead i am watching refinancing numbers that applications to refinance homes because mortgage rates have fallen dramatically with 10-year yield close to 2%, they jumped most recent weeks 47%. so does that leave american consumers flush heading into the summer? >> i think they are relatively flush because we have high employment we missed the number a little bit last week we really are strong economically, in terms of of the letter to the president walmart macy's target, et cetera, we will definitely see i think those numbers be flat in terms of their prices, because they can -- they command whatever prize they want from middle man they take the cut, it is not going to be a issue we will see it with mid sized small traefrlz that can't carry tariffs we are strong a positive outlook ahead. >> you are shaking your head. >> aaron killed a it completely correctly, that to your point dagen consumers refinancing lower gas prices more ot, over time at work increasing employment disposable income, and as you and referenced so many choices u.s.'s 400% overstored in square footage in retail manufacturing overcapacity inflation prices continuing to come down, tariffs a concern, but de minimis in terms of cost to consumer and as you referenced, still full speed ahead in terms of sales growth. dagen: i will point out editorial that andy puzder wrote in the journal we've talked over and other again how wage growth in lower paying industries for nonsupervisory employees that is where the wage growth has been, that those wages are growing faster than say supervisors that gives broad consumer base a lot of -- as my father would say walking around money. >> exactly. >> the consumers that are more apt to spend money so you will see it come through in retail sales numbers i could pose a question to both of you who are the winners because we are -- kind of talked about you are seeing high end lululemon doing really well also the discount retailers doing pretty well, also, so is it just those on high end getting into the online space are being successful? and then everyone else is going to the low end retailers or who is the winner night is an interesting you bifurcation, extreme value the other bifurcation the retailers that have best socially retail programs, solar specifically amazon all walmart, target, costco ikea taking the money making and saving from solar rolling into lower prices so tariffs are de minimis, and the retailers winning with solar best price best value, to socially click survey seeing over 20% of consumers switching to retailers that are socially environmentally responsible with solar that is why b j's walmart, target amazon costco ikea win they are guys crying blues about tariffs are keveching about stuff can control their destiny supposed october worried about health like the stone ages with mr. slate bottom critique doing nothing environmentally. >> it would take an extra block for -- [laughter], i love you for it. kevin i want to get you in. >> i think fascinating looking at retail sales because all about the omni channel right providing experience because like, consumer is going into the store right now expecting an experience to build relationship with brand because store is gateway to the consumer i think that is this whole esg thing is a small little dangle, i think it is mostly we talked about restoration hardware go in eat -- social governance whole socially responsible stuff what burt was talking about i could give a hoot if solar paemz would i like to go have an experience feel connected to the brand that is where restoration hardware is doing the earnings blowout one of the reasons i can go in get a nice latte walk around do stuff eat whatever when you talk ross go to ross you walk in a treasurehunt find a barring get excited about it, you do that, kohl's get people in there they can return from amazon, so i think that is the key. >> kohl's great solar leader to michelle -- >> again do i care about -- i prices stay low shopping at walmart. >> lower prices reinvesting solar savings, and lowering prices locking in energy costs 20 years when about electricity and utility costs from wildfires storms skyrocketing the private sector has a solution, and has implementation not like somebody from on high in government come along to save all our lives. >> i walked into whole foods they wiped out half cash registers, i was in new york amazon store one person working in the entire store. of the you didn't all you had was phone you tapped go in and leave, is this what new retail is looking like brick and mortar wise. >> that is new retail. and amazon whole foods combined are leading it full disclosure did due diligence catching up eclipsing everything else key points. >> i think restoration hardware is the absolute case study how to win this this market because of instagramableable moments as well as membership plan and then also 34r5us online sales going to open 15 stores in china going to change their production and move into u.s. so i think all about being proactive they are doing it right. dagen: i will end on this, luxury retrailer online redesigned app it is awful don't work makes much more difficult to use they don't present the merchandise hide from it you which is horse hooey. >> needs a better job i bot a lot on sale from them had to throw in garbage we act like these -- online retailers are going great guns doing a terrific job but, again, i don't take that for granted i think some companies are taking this for granted. >> great merchants bloomingdales used to do a year focusing on goods people culture, from china then france, then they would do -- uk et cetera, and as government leaders meet we leaders why not feature countries we are trying to negotiate with, rather than fight on tariffs, and help them with goods and like you guys said so well the branding the way marvin traub michael gold did every year at bloomingdales great spoipts on restoration hardware. dagen: good to see you, thank you so much, investors eyeing tensions overseas not taking toll on markets, stuart varney weighs in, and portable shots, yeah liquor shots one company changing the game with high end prepackaged drinks no more yeager meister they can do better. ♪ ♪ let me ask you something. can the past help you write the future? can you feel calm in the eye of a storm? can you do more with less? can you raise the bar while reducing your footprint? for our 100 years we've been answering the questions of today to meet the energy needs of tomorrow. southern company dagen: tensions rising with iran following tanker attack interceptor over a china trade deal investors taking it mostly in stride, joining me now the host of "varney & company" stuart varney, what say you sir? >> well, i agree with you entirely, look you've got trouble trouble everywhere. china trade, the gulf yet you've got downside move in the dow opening bell what 30 points most is accounted for by apple intel just two stocks on the other hand, you do have a flight to safety money is going into the 10-year treasury, going go symbolized looking for safe haven that is where it is strangely, i thought it was strange, it is not coming out of the stock market. and that was a surprise to me. you know when you see a tanker on fire in the gulf, you hear about iranians did it videotape of them removing a mine that didn't yet go off you are this can come on surely oil will spike or stocks go sharply lower none of the above, pretty much unchanged oil is actually down a little how about that? >>. dagen: you are taking to secretary of energy coming up on your show i will tell you i talked about it as long as i have worn a microphone sat in front of the tv camera, critical part of our national security is our energy security, with number one oil producer in the world we have a great deal more control over our because of that. >> if you had a tanker on fire in the gulf five years ago price of oil would have spiked 10% instead virtually unchanged 52 dollars a barrel i am speaking to energy secretary perry in louisiana launching america's liquefied natural gas drive. >> supplying gas to allies great to see you less than u minutes 9 a.m. monday through friday "varney & company." straight ahead. >> one company changing game with high end prepackaged drink a live look in studio. ♪ ♪ knockem back, fillem up fillem up -- ♪ also available in hybrid all-wheel drive. lease the 2019 ux 200 for $329/month for 36 months. experience amazing at your lexus dealer. you're smart,eat you already knew that. but it's also great for finding the perfect used car. you'll see what a fair price is and you can connect with a truecar certified dealer. now you're even smarter. this is truecar. ♪ ♪ . dagen: you go in a bar with friends what do you share shots, we have shots, changing the game high end prepared craft shots company on the go spirits particular music festival clubs casinos, joining me meekly and -- >> good to see you both talk to me about how fast this is growing. >> my god 40% since last year, this time. mostly driven by consumers seeking convenience premiumization, they can bring, beach pool parties social activities outdoor gatherings in 2013 was not popular category. >> how did i get in on this. >> from a functional perspective, there was a lack of portable about high quality cocktail. and we decided to do it in a shot format, you can -- shoot it sip it pour over ice. >> i was going to say so consumers primarily get this at a liquor store grocery stories restaurants? having this? >> sure yeah, as launched walmart throughout country total wine and more one of the he largest retailers in the country over 1,000 independent liquor stores huge on principles music festivals casinos bars clubs. dagen: if you are in a game passing the bottle around unsanitary just kidding. >> the fact sealed big deal consumers know nothing is put in drink obviously, what otherwise going on. >> can hand out as opposed to making drinks speeds up the volume. >> premixed. >> something before we go really exciting, is that shot culture having fun with friends. >> liquor. >> three flavors tequila whiskey premium spirits, low calories resonates with health-conscious consumer. >> final word what do you have to say before we go tray the cocktail. >> michael, good to see you both thank you so much coming up we are taking you live to pebble beach need a shot at u.s. open. >> straight ahead. my body is truly powerful. i have the power to lower my blood sugar and a1c. because i can still make my own insulin. and trulicity activates my body to release it like it's supposed to. trulicity is for people with type 2 diabetes. it's not insulin. i take it once a week. it starts acting in my body from the first dose. trulicity isn't for people with type 1 diabetes or diabetic ketoacidosis. don't take trulicity if you're allergic to it, you or your family have medullary thyroid cancer, or have multiple endocrine neoplasia syndrome type 2. stop trulicity and call your doctor right away if you have an allergic reaction, a lump or swelling in your neck, or severe stomach pain. serious side effects may include pancreatitis. taking trulicity with a sulfonylurea or insulin increases low blood sugar risk. side effects include nausea, diarrhea, vomiting, belly pain and decreased appetite, which lead to dehydration and may worsen kidney problems. i have it within me to lower my a1c. ask your doctor about trulicity. >> the first round of u.s. open round up. we are live in pebble beach california with the very latest. it has been so much fun out here. round one yesterday very exciting justin rose just killed it on the course we saw him tying the record for the lowest in history. tiger woods did that in 2000 and he played with tiger woods it was an interesting combination and fun to see. we were here yesterday right on the putting green as tiger came through. i should tell you when justin rose came in barely a peep. tiger still getting all of the attention here and we saw him come down the street here. the u.s. open they try to make it difficult. the rough is rougher in the grass is higher, i wanted to find out what it would be like for the average golfer to play this course in competition. >> he got 12 mulligan's a shot. it actually be him up so badly he walked off the golf course. i've been able to shoot a very respectable score and in two weeks ago. open conditions. maybe 15 chatsworth. we're gonna be here all day covering the back story. stuart, take it away. stuart: good morning everyone. we have major developments on the oil tanker attack has to do with iran fox news pentagon producer is getting all of the information together for us. we will go to him as soon as he has ready. here's what we have so far. video of what is believed to be an iranian boat removing a mine from the side of an oil tanker in the gulf. this tanker had been att

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